- Disney is exploring a free Disney+ tier to bring more viewers into its streaming ecosystem
- CEO Josh D’Amaro says a free offering could help drive subscriber growth
- The idea is for Disney+ to become a broader digital hub beyond movies and TV shows
Disney’s TikTok partnership wasn’t the only streaming news from the House of Mouse today. During the company’s earnings call, CEO Josh D’Amaro revealed that Disney is exploring a free tier of sorts for Disney+ — a move that could eventually give more viewers a way into the platform without paying for a subscription.
That doesn’t necessarily mean free access to the entire Disney+ catalog. The service currently houses a massive library of owned content spanning Disney Animation, Disney Channel, Pixar, Marvel, Star Wars, FX, and more. Disney+ already offers an entry tier with ads, including pre-roll and mid-roll placements during TV shows, movies, and documentaries.
Instead, Disney appears to be viewing a free offering as a potential new funnel to introduce more viewers to the platform and eventually convert them into paying subscribers.
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On the call, D’Amaro explained that the idea could help Disney reach a more price-sensitive audience, saying: “First, we see it as a way to expand our reach to a customer segment that’s more price sensitive. Expanding our reach is, as we’ve talked about before, one of our strategic priorities.”
He added that a free tier could also support Disney’s growing advertising business: “Second, unlike a lot of our AVOD competitors, we’re fairly well sold, meaning more inventory would actually help us accelerate our ad revenue growth.”
Finally, D’Amaro noted that a free offering could help drive new subscribers into Disney+: “And then finally, as you mentioned in your question, a free offering could help us drive top-of-funnel Disney+ subscriber growth.”
For now, Disney isn’t committing to a launch date or specific structure. “So nothing specific to announce today, but definitely something that we’re considering,” D’Amaro concluded.
While some of the best streaming services, including Disney’s own Hulu, have offered free tiers, the current market for fully free, ad-supported streaming is largely dominated by platforms like Samsung TV Plus, Tubi, and Roku. Disney+ entering that space could be a compelling move, especially if the company uses its massive portfolio of franchises and recognizable brands to attract viewers.
But the bigger picture may not just be about streaming. D’Amaro also underscored the importance of Disney+ as a “global touchpoint” for the company, suggesting the service could become a much larger gateway into the broader Disney ecosystem.
Today, that ecosystem is still fairly fragmented digitally. Disney+ serves as the primary destination for its streaming content, while other major parts of the company operate through separate experiences — including the My Disney Experience app for Walt Disney World, the Disneyland app for guests in California, Disney Cruise Line’s own digital tools, dedicated apps for international parks, and various gaming platforms including a partnership with Fortnite.
While there have been rumors about Disney+ eventually evolving into something closer to a super app, D’Amaro instead described it as a “digital centerpiece” that could eventually encompass shopping, other brand experiences, and even gaming. The timeline for those expansions may be further out, but it’s clear Disney sees Disney+ as more than just a place to watch movies and TV shows.
A free tier could be the first step in lowering the barrier to entry and getting more people connected to that larger Disney ecosystem — even if they aren’t paying a monthly subscription fee right away
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jacob.krol@futurenet.com (Jacob Krol)
